Custom RSI suggested by Adrian Morosan research

Adrian MOROSAN (2011) examined the same set of data using both traditional and modified RSI. He also incorporated trading volume in the method's calculating formula. Finally, findings acquired using the indicator's traditional form will be compared to those obtained using the modified version. He found that, in comparison to the original form, his version resulted in a greater advantage when a different, even opposing interpretation was used. And, in the alternative case, it resulted in much larger losses. This implies that the study indicates that short-term trends will persist, at least temporarily. It seems as if the conventional view is incorrect, while the alternative understanding produces beneficial results. Using the RSI version that we suggest yields the best results. Based on his research, we have created an indicator on MT5 that allows finding and confirming price reversal points.

Explanation

This indicator consists of 1 traditional RSI line and an RSI extended line based on squaring parameters from the traditional line. The extension line will be smoothed by SMA and EMA algorithm. According to testing, smoothing the extension line with SMA(7) gives the best and early results. Larger cycles increase reliability but also slow down the signal.

Usage

A buy signal occurs when the RSI line crosses the overbought level and turns down. After that, the RSI extended line to top and go down.

A sell signal occurs when the RSI line crosses the oversold level and goes up, the RSI extended line makes a bottom and goes up.

Look image for more details.

Settings

·         RSI Length: Tranditional RSI perior. Default is 14

·         POW factor: A factor to compress o expand AdmRSI. Default is 1. Compress factor when in [0-1] and expand when in [1-10]

·         Overbought level and Oversell level: just like traditional RSI

·         Smooth by sma: =0 is disable. Default is 7;

·         Smooth by ema: =0 is disable. Require smooth by sma

·         Notification type: You can choose Alert,Telegram or MT5 mobile app. If you want to forward message to telegram, please read the end of this intrution

·         Notification at: You can choose noti once when has a signal or noti on per bar (on new bar)

Some other setting if you choose forward signal to telegram

·         Telegram channel_id: Telegram channel id or group id. Using 0 if do not foward message to telegram

·         Telegram bot token: Telegram bot token. Using blank if do not foward message.

·         Telegram message template: Template of message that send to telegram.

Configure notifications via telegram